Bad Credit Car Loans
Are you one of the many Americans with a poor credit history? Do you desperately need auto financing but have a credit score (also known as your FICO score) below 640? If you answered yes to both of these questions then you will be relieved to know that there are a number of lenders who work with car dealers to offer bad credit car loans.
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There are mainly two types of lenders who will offer consumers with bad credit the ability to finance a vehicle and they include:
- Bad credit car loan lenders
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Driverslane.com explains the only negative about working with one of these lenders, who make loans through retail car dealers, is that they usually charge you a much higher interest rate. That is because this is a form of subprime lending and, due to the fact that the risks are much higher for these types of loans, the rates are higher than those of more conventional lenders such as banks and credit unions (whose rates are usually closer to "prime" rates).
That being said, the main focus of subprime lenders is to help find a way to get you approved for bad credit car loans as well as rebuild your credit history and improve your FICO scores while you are driving a new or low-mileage pre-owned vehicle. - Buy here pay here or "tote the note" lenders
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These are lenders who are also car dealers. Unlike most traditional new car dealers, the dealers who do in house financing don't follow what might be considered the "normal" rules of auto financing. If you visit one of these dealers while shopping for a car and a bad credit car loan, you'll find that buy here pay here dealers usually aren't as stringent as those lenders that offer bad credit car loans.
These dealers will verify your income and residence while you are applying for auto finance and even recent repossessions are usually not an issue. What these dealers will ask for is a much larger down payment, given the average value of the cars they sell. It also means that the annual percentage rate of interest charged by these dealers is much higher than what most bad credit car loans lenders would charge.
The bottom line is that you should choose a bad credit car loans dealer that specializes in bad credit car loan customers and deals with a broad spectrum of subprime lenders. We can match you up with dealers who should be your first choice for bad credit auto financing.
Basic Financing Requirements
- At least one year at the same employer for those with no credit rating.
- At least two years of employment history for those with some kind of credit history.
- Minimum monthly gross income of $1500.00.
- Money down may be required, but is not necessary in every case.
- No repossession within the last 12 months unless included in a bankruptcy.
- No motorcycle or private party purchases.
- Must reside in the United States or Canada.
Customer Testimonial
"Drivers Lane made getting our car a breeze, even with our low credit scores."
"Thank you!"
Joe & Jen L.
Auto Loan Terminology
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Frequently Asked Questions
How much down payment will I need?
The down payment amount that you will need is based on a number of factors, including your credit histroy, the price of the car, income, and more.